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LEADING CHANGE
CORPORATE GOVERNANCE MODELS:
INDIAN PERCPECTIVE
Presented by:
Shweta agrawal
Shipra maheshwari
MBA 2
nd
year
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Introduction
"Corporate governance deals with the rights and
responsibilities of a company's management,its board,
shareholders and various
stakeholders."
Organization for Economic
Co-operation and Development ("OECD"),
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Objectives of study
To analyze corporate-governance models
adapted in India since its independence.
To analyze the regulatory mechanism of
corporate governance to protect the interestof
investors in India.
To suggest an alternate model of corporate-
governance in India.
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Why Corporate Governance
Rights and equitable treatmentofshareholders
Interests of other stakeholders
Role and responsibilities ofthe board
Integrity and ethical behavior
Disclosure and transparency
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Models of corporate governance
in India
1. The Managing Agency Model (1850-1956)
2. The Business house Model (1956-1991)
3. The Anglo-American Model (1991till date)
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The Managing Agency Model
(1850-1956)
The managing agents who were individuals or
firms managed the joint stock companies. TheBritish merchants
were the first managing
agents.
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The Business house Model(1956-1991)
The basis for this model is the promotion of
economic development and welfare state schemes.While the public
sector played an important role,
the private sector also had its own importance in
the development of economy. The Companies Act
of1956 laid the foundation for this model.
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ManageManage MonitorsMonitors
andand
regulatesregulates
OwnOwn
ShareholdersShareholders Board of DirectorsBoard of
Directors
( supervisors )( supervisors )
StakeholdersStakeholders
OfficersOfficers
(Managers)(Managers)
CompanyCompany
CreditorsCreditors Regulatory/LegalRegulatory/Legal
SystemSystem
ElectElect
Lien onLien on
AppointsAppoints
andand
supervisesupervise
ss
Stake inStake in
The Anglo-American Model
(1991-till date)
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ShareholdersShareholders
Board of DirectorsBoard of Directors
( supervisors )( supervisors )
OtherOther
StakeholdersStakeholders
OfficersOfficers
(Managers)(Managers)
CompanyCompany
Elect 70%Elect 70% Elect 30%Elect 30%
ManageManage
Appoints andAppoints and
supervisessupervises
OwnOwn
Suggested model
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Suggestions
Many times there is duplicacy of regulatory
bodies so a consolidated regulatory system is
needed to ensure corporate governance goals.
Organizations must focus on stakeholders as
well.
Protect the interest of investors by showing
transparency and disclosures of all relevant
information.
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Good corporate are not born but are made by the
combined efforts of all stakeholders, board of
directors, government and society at large.
it is now an unacceptable proposition that
corporation exist purely for the profit of those
who constituted it.T
hey are expected to betransparent , accountable and even
beneficial to
the larger society.
Conclusion
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THANK YOU
